Mexico's Cross-Border E-commerce Revenue to Grow 5.9% by 2025

Mexico’s cross-border e-commerce revenue is projected expand to 5.9% of the market in 2025, according to Statista, as digital payments continue to revolutionize the payment landscape in Latin America.  

Alternative payment methods have emerged as the driving force behind the rise of cross-border e-commerce in Latin America. Pix in Brazil, PSE in Colombia, and digital transfers have revolutionized the payment landscape, accounting for over 40% of e-commerce volume. These methods offer merchants and consumers efficient and secure payment options, facilitating seamless transactions across borders.

“Global e-commerce is growing by 10% per year, while cross-border e-commerce is growing by 27% per year,” says Nicolás Leal, Founder and CEO, LAP Marketplace. “In 2022, 17% of e-commerce purchases were from one country to another and, according to these trends, it is expected that by 2030, one out of every two e-commerce purchases will be through cross-border channels.”

In smaller markets with underdeveloped domestic e-commerce industries like Central America, Bolivia, and Ecuador, cross-border participation exceeds 50% due to a developing domestic market. “Brazil is on the global stage as a growth reference, which opens up numerous opportunities in other countries. However, there are disparities. Cross-border e-commerce penetration ranges from 14% to 25% in countries with open trade regulation regimes while countries with less domestic market penetration range from 70% to 90%,” said Lindsay Lehr, General Director, Payments and Commerce Market Intelligence during a press conference.

Mexicans show a 78% higher inclination toward online purchases, regardless of the product's origin country, according to Stripe. Moreover, there is a growing interest among Mexicans in exporting goods, as 75% intend to explore new international markets within the next two years. This trend has remained steady since the pandemic's onset, with companies actively seeking ways to extend their global reach. Mexico's proximity to the United States also facilitates cross-border participation exceeding 20%.

Experts note that one of the payment trends that can facilitate international e-commerce is peer-to-peer instant payments facilitated through cell phones. “Global merchants are witnessing expansion in the Latin American region, where 97 million people have tried e-commerce. With over 90% having internet access and 80% using mobile devices, there is a strong possibility for the market to become a reality for global commerce,” said Juan Pablo Jiménez, CCO, Kushki. 

Although international merchants need alternative payment strategies in Latin America, credit and debit cards will still account for over 50% of the volume in the coming years, albeit with a decline in the share of credit cards from 48% to 44% by 2026. The current challenges in technology include regulatory issues, ecosystem partnerships, as well as concerns regarding interoperability and the management of personal data, Jimenez noted, as payments migrate to the digital ecosystem.